By SUSAN JONES
Pitt is requesting a larger than normal increase in state funding next year — 9.25 percent over the $162.3 million that Gov. Josh Shapiro proposed for fiscal year 2023-24 — “as we are looking to partner with our legislators to freeze in-state tuition for 2024-25,” according to a Pitt spokesperson.
The University submitted its budget request by the end of September deadline, even though funding for the current fiscal year for the four state-related universities — Pitt, Penn State, Temple and Lincoln — has yet to pass the state legislature, nearly three months after the deadline.
Republicans in both chambers voiced disappointment this year that Pitt, Penn State and Temple wouldn’t commit to a tuition freeze if they receive the 7 percent funding increase requested by the governor.
All of the money from the state goes toward reducing tuition for in-state students.
To achieve a tuition freeze, Pitt said it would need an 11.75 percent increase in FY 2025 over the amount proposed by Shapiro in his FY 2024 budget. “However, we are not requesting the full increase from the state. Instead, Pitt is committed to sharing this expense and is willing to cover 2.5 percent of the increase through cost savings,” the spokesperson said.
The cost savings would add up to about $4 million. But the University said it “will not be making reductions that will impact the quality of the education it provides to students, nor will we be making cost reductions at the expense of Pitt’s hardworking faculty and staff.”
The savings will not come out of salaries, benefits or programs.
“Instead, the University will continue to focus on cost reduction efforts through a broad range of initiatives including strategic sourcing, streamlining operations, sharing services, emphasizing sustainability, and improving productivity through system enhancements,” the spokesperson said.
The request for a 9.25 percent increase would bring Pitt’s general funding from the state to $177 million, assuming this year’s funding proposal by Shapiro is approved.
Pitt said the focus on a tuition freeze is part the University’s unwavering commitment to “our pursuit of minimizing costs for Pitt students while upholding the delivery of a high-quality, world-class education. Decisions regarding tuition rates are difficult, but the University’s leadership aims to carefully balance economic demands, market forces and other competitive factors along with the needs of our students and their families.”
Pitt provided $275 million in institutional financial aid last year, a commitment the University said will continue going forward. Approximately half of all of Pitt’s students — in-state and out-of-state — receive financial aid, beyond the in-state student discount.
This year, Pitt raised tuition 2 percent for in-state undergraduate students in Oakland; 7 percent for out-of-state undergrads; and 3.5 percent for all graduate students. On the regional campuses, tuition remains the same as last year.
Penn State also held tuition flat at its regional campuses for 2023-24 and increased tuition by 2 percent for in-state undergraduates at the University Park campus each of the next two academic years.
At Temple, tuition went up 4.2 percent for in-state students and 4.4 percent for out-of-state.
Peer comparison
In general, the University of Pittsburgh finds itself in a much better financial position than the other two large, state-related universities — Penn State and Temple — and some nearby schools, like Chatham and West Virginia universities. Pitt continues to operate in the black and has had no involuntary staff cuts, although there were retirement incentives offered in 2020.
Hari Sastry, Pitt’s chief financial officer, said earlier in the summer that Pitt is in good financial shape and will use money it planned to spend later in the year to cover the tuition discount during the appropriation delay.
The Tribune-Review reported in August that Penn State had projected a $140 million deficit in its $3 billion education and general funds budget for the fiscal year ended June 30. As of July, that deficit had been pared to $63 million, university officials reported. Part of the savings was realized through a university-wide hiring freeze.
This year, most units at the university will see budget cuts of 2 to 4 percent. Penn State is projecting deficits of $44.5 million this fiscal year and $34.1 million in 2024-2025.
In a meeting Sept. 8, Penn State’s board of trustees approved an appropriation request for fiscal year 2024-25 that is 33 percent higher than the anticipated 2023-24 state funding — which would be an increase of $120.1 million to $483.4 million for 2024-25.
Last year, the Penn State board approved a request for 47.6 percent more than the previous year. The state’s largest university argues that its per-student state funding ranking is last among the commonwealth’s public universities, as well as significantly below the national average.
In August, WHYY reported that Temple began the fiscal year with a projected $90 million budget deficit due to inflation, a decrease in enrollment and the uncertainty of the Commonwealth appropriation. Two-thirds of that shortfall has since been reduced with the elimination of 140 staff vacancies.
Temple will cut its budget by 4.6 percent — more than $57 million — this year. Since fiscal year 2021, Temple has reduced its budget by more than $170 million, with an average cut of more than $42 million per year, according to the university.
Chatham’s budget is facing a $6 million deficit and the school has eliminated about 8 percent of staff positions. WVU has gained national attention for the program and staff cuts approved by its board last week, including all foreign language degree programs, to help close a $45 million deficit.
Lincoln University, a small historically black college in Chester County, also is still awaiting money from the state.
Susan Jones is editor of the University Times. Reach her at suejones@pitt.edu or 724-244-4042.
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